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Issue 1 2021 - Freight Business Journal


///NEWS


Scottish freeports – tax-dodgers not welcome The Scottish government has Associated British Ports


(ABP) has joined Maritime UK’s Diversity in Maritime programme. Its ports in Southampton


and East Anglia have been recognised by the Diversity in Maritime Charter for their success in implementing initiatives to attract a more


diverse workforce. Twenty volunteers from across the business helped create an action plan for further improvement, which the company is hoping to build on for its other locations. In July 2019, ABP became the


first UK port operator to provide PPE designed especially for women.


published its own version of the UK Government’s freeports scheme, saying that it will press for high employment standards and green credentials. At a virtual meeting of the


Scottish Parliament on 21 January, Minister for International Trade Ivan McKee MSP said that the reputation of free ports across the world is mixed, with concerns over deregulation, criminality, tax evasion and reductions in workers’ rights. “That is not a model nor an approach that the Scottish Government will sign up to or allow here in Scotland,” he declared. Having carefully considered risks


the survey of


and carried out businesses,


a local


authorities and others on ‘place- based economic development’, the Scottish Government has developed a proposal “that adapts the published UK Government proposition to make it fit the Scottish context. We will take the UK Government’s free port model and apply Scotland’s values and priorities to it, so that it meets our ambition to deliver a net zero economy and uphold the highest standards of environmental


protections and fair work


practices,” said McKee. Scotland would “turn free ports


into sustainable and fair green ports. We will not engage with any economic model or mechanism that allows for a race to the bottom. Instead, the Scottish green port model will be an exemplar, adopting best practice to help us to deliver our net zero and fair work principles alongside support for our regeneration and innovation ambitions.” The right to operate in


such a zone would come with responsibilities to uphold high standards, put into practice fair work principles and work towards net zero emissions. Greenports would be designed


to support new green technologies and fair work opportunities and to embed themselves in their local communities. Conditions will include


payment of living wages and the adoption of the Scottish business pledge by the operator of the zone and by all new businesses operating within its boundary that benefit from any government assistance. Applicants


Greenports will


for operations in be


expected


to demonstrate how they are contributing to Scotland’s transition to net zero emissions and a low-carbon economy—for example, by meeting certain standards related to reductions in greenhouse gas emissions and waste and setting out a robust and ambitious transition plan to achieve this. As with the UK Government’s


model, there will be a mixture of reserved and devolved tax benefits and other support, which might include non-domestic rates and land and buildings transaction tax reliefs and will be designed specifically for the Scottish green port model, taking into account the complementary reliefs that are on offer from the UK Government. McKee added: “I am clear that


we will not allow any free port to be created in Scotland that enables or allows potential tax evasion. I have raised that specific issue with the Chief Secretary to the Treasury. It will be essential that the UK Government plays its part by including firm legislation and measures to ensure good tax behaviours. More widely, our Governments will want to work together on compliance, governance and management


of performance related to the operation of Scottish green ports and the business that is conducted within their boundaries.” He


said the Scottish


Government’s next step would be to publish an application prospectus for potential bidders which would be available this quarter. Peel Ports Clydeport director


Jim McSporran said: “We welcome the Scottish Government’s statement on free ports and look forward to working with Mr McKee and his team in delivering this initiative. Without it we believe Scotland’s


ports could have


been placed at a competitive disadvantage compared to other parts of the UK. “We are keen to see a free port


established in the West of Scotland and will make a strong case for that to happen in partnership with other regional stakeholders. We are already engaging to that end. “Our ports in places like


Greenock are ideally located to benefit local communities who live in and around the facilities due to their ability to attract inward investment, new employment opportunities and


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